bgrim: investor presentation for year end 2017
TRANSCRIPT
Q4 and YE 2017
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
BGRIM INVESTOR PRESENTATION
1
STRONG
PERFORMANCE
IMPROVEMENT
WITH
REMARKABLE
AWARDS ANDRECOGNITION
BGRIM YE 2017 Key Highlights
STRONG OPERATING PERFORMANCE Enhancing profitability with growing top line
• 14% Sales growth YoY reaching THB 31.48 billion for YE 2017
• 16% EBITDA growth YoY reaching THB 8.73 billion with 28% EBITDA Margin
• 48% NNP to Owner growth YoY reachingTHB 1.73 billion
STRENGTHEN CAPITAL STRUCTURE
AWARDS AND RECOGNITION ‘BEST IPO DEAL IN SE-ASIA 2017’
by Alpha Southeast Asia Magazine
‘THE BEST IPO 2017’
by the Asset Magazine
‘BEST ENERGY SOLUTION PROVIDER’
by International Finance Magazine
‘BOND DEAL OF THE YEAR 2017’
by ThaiBMA
• Net D/E ratio 1.4x as of 31 Dec 17 reduced from 4.1x as of 31 Dec 16 (Net Interest-bearing debt) thanks to the IPO proceed
• Financing cost has reduced from 4.9% to 4.7% in 2017 mainly attributable to an issuance of 11.5bn project bond and repayment of loan after IPO
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
2
BGRIM Updates and 2018 Outlooks
BGRIM Overview and Strategies
YE 2017 Operating Result
Project Update
Agenda
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
3
BGRIM Updates and 2018 Outlooks
“BGRIM increases operating capacity through organic growth and M&A”
Upcoming COD in 2018 New growth towards
renewables ABPR3 completed COD in Feb 18
ABPR4 to be COD in Q2/18
ABPR5 to be COD in Q4/18
Nam Che hydro project and Solar Farms
project to be COD in Q4/18
Inorganic growth by partnering with
Progress Interchem (Thailand) Co., Ltd.
to diversify into industrial waste energy
“BGRIM constantly strives to improve efficiency of our operation”
Enhancing efficiency and
availability
Collaborating with Siemens to enhance
performance of projects in operation
Reducing Financing Cost USD 235 million of ADB facility were
signed in Feb
THB 5.5 bn of debenture to be
rolled-over by Q4/2018
Refinance with project debenture/loan
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
4
Additional Capacity of 445 MW in 2018 – 27% Growth year-on-year
“ABPR3 (133 MW) – COD on 1 Feb 2018 – In Time / In Budget”
COD
SCOD
Jun 2018 Oct 2018 Q4 2018Dec 2018NAM CHE 1 HYDRO POWER
PROJECT
15 MW
AMATA B.GRIMM POWER
(RAYONG) 5
133 MW
AMATA B.GRIMM POWER
(RAYONG) 4
133 MW
SOLAR FARM PROJECTS
31 MW
“BGRIM continuously grows and
diversifies portfolio both domestically
and internationally”
Upcoming COD in 2018 ABPR3 completed COD in Feb 18
ABPR4 and ABPR5 are on track
Nam Che hydro project SCOD in Q4/18
Solar farm projects SCOD Q4/18
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
5
Services Collaboration with Siemens
“BGRIM and Siemens Thailand aims to
collaborate on enhancing the performance of
Siemens gas turbine used in BGRIM plants”
To enhance heat rate of
gas turbine after
performing major overhaul
To predict the degradation
of a machine more
accurate
To increase availability or
reduce a number of
maintenance days
Enhance
Efficiency
Enhance
AvailabilityMoving towards
Digitalization
Benefits from the collaboration with Siemens
Enhancing efficiency,
availability and digitalization
More electricity to sales
during maintenance
Use less gas to produce
electricity
More capacity available
to sales to IUs
Collaborating with Siemens
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
BENEFIT TO OVERALL SYSTEM
• Provide clean, reliable secure and
affordable energy
• Minimize loss in transmission
• Balance usage of electricity between peak
and off-peak
6
Full Integrated Smart Microgrid Diagram
Microgrids rely on control systems (or microgrid management systems) to optimize generation, loads, and
interactions with the grid.
BENEFIT TO OPERATOR
• Act as “System Operator” to maintain high
reliability of power supply
• Expand customer base by minimizing
spinning reserve (more capacity to sell to
customers)
• Potentially benefit from wheeling charge
in transmission and distribution
BENEFIT TO CUSTOMER
• Have alternative source of power supply
with potentially cheaper and
uninterruptible
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
7
Financial Cost Improvement from Well Managed Capital Structure
Reducing Financing Cost “BGRIM financial cost will gradually
reduce by well managed capital
structure”
14%
86%
TOTAL DEBTTHB 53,856 MM
Project level
Corporate
level
1. Corporate loan saving
10%
4%Loan
THB 1.9 bn
Debenture
THB 5.5 bn
Existing
Corporate Debt
2. Strategy to reduce financing costs
21%
65%
Loan
THB 34.9 bn
Debenture
THB 11.5 bn
Existing
Project Debt
Exploring alternative funding by refinancing with potential
projects in 2018 to reduce financing costs which includes,
• BIP1+BIP2 – outstanding debt of THB 6,700mm
• Solar (15 projects) – outstanding debt of THB 5,800mm
4.9%
4.7%
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
2016 2017
Financing Cost has improved
to 4.7% compared to 2016
Corporate Debenture will be rolled-over by a rating bond
in which the credit rating process has been kicked-off in
Feb 2018
Potential to gearing with low funding cost facility, i.e.
ADB of USD 235mm which were signed in Feb 2018
THB 46.4 bn
THB 7.4 bn
USD 235 million of ADB facility were signed in Feb
THB 5.5 bn of debenture to be rolled-over by Q4/2018
Refinance with project debenture/loan
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
8
BGRIM Diversifies into Industrial Waste to Energy Power Plant
Project
company
Progress Interchem (Thailand) Company Limited
Project
type
Pyrolysis system from used tire, used
oil, plastic with diesel engine and generator
Location Ratchaburi Industrial Estate
Project capacity
Contract capacity of 4 MW Installed capacity of 4.8 MW
PPA Period 20 Years
SCOD 31 Dec 2019
Project Profile
“BGRIM grows inorganically by investing
in Industrial Waste Power Plant Project
with 48% shareholding of Progress
Interchem”
New growth towards renewables Inorganic growth by partnering with Progress
Interchem (Thailand) Co., Ltd. to diversify into
industrial waste energy
Project cost THB 650-700 Million
Tariff
structure
FIT THB 6.08 for 20 years+ THB 0.70 for the first 8 Years
Contribution
BGRIM response in term of
project management, O&M, and
seek for financing.
Metro Energy is a key player in
industrial machinery business.
Their responsibility is to secure
raw materials, i.e. industrial
waste.
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
9
BGRIM Updates and 2018 Outlooks
BGRIM Overview and Strategies
YE 2017 Operating Result
Project Update
Agenda
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
49%
44%
2%5%
Total 298 MWIn Operation
134 MW
Solar Group
145 MW
(31 MW under development)
Hydro Group
133 MW
(15 MW under construction
98 MW under development)
Wind Group
16 MW
(under development)
Bien Hoa
13 MW
Diesel
34%
29%
11%
11%
9%
6%
Gas Fired
Total 2,206 MWIn Operation 1,631 MW
Amata Nakorn*
754 MW
Amata City
647 MW
(266 MW under construction)
Bangkadi
229 MW
Laem Chabang*
206 MW
Hemaraj
130 MW
V.R.M.
240 MW
(under development)
10
Type of Energy
Installed MW Equity MW
Total Capacity
% In operation
Total Capacity
% In operation
Gas fired
2,206 MW 87.6% 1,631 MW 1,498 MW 87.9% 931 MW
Hydro 133 MW 5.3% 20 MW 95 MW 5.5% 14 MW
Solar 145 MW 5.8% 114 MW 90 MW 5.3% 59 MW
Wind 16 MW 0.6% 15 MW 0.9%
IWTE 5 MW 0.2% 2 MW 0.1%
Diesel 13 MW 0.5% 13 MW 4 MW 0.2% 4 MW
Total 2,518 MW 100% 1,779 MW 1,703 MW 100% 1,008 MW
Diversified Portfolio of 2,518 MW / 1,779 MW in Operation (as of 1 Feb 2018)
Remark: *Assuming ABP2 (59.6 MW) and BPLC2 (56.1 MW) still run 1 gas turbine and steam turbine configuration after SPP
replacement plants achieve COD
SPP – INDUSTRIAL ESTATE 87.6% RENEWABLE GROUP 11.9%
TRANSMISSION & DISTRIBUTION 0.5%
Industrial Waste to
Energy (IWTE)
5 MW
(under development)
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
2017 SALES AND SERVICE INCOME BY CUSTOMER WEIGHTED AVERAGE REMAINING PPA LIFE
EGAT
61%
IU-TH
30%
IU-VN
4%
Steam-TH
2%Others
3%
THB 31,482 mm2017 Sales and service
IncomeLONG-TERM PPA STRUCTURE
• EGAT : 21 to 25 years tenor with take-or-pay structure
• PEA : 25 years tenor (VSPP of solar, wind, waste to energy)
• Industrial Users : up to 15 year tenor with track record of extensions
Secured Gas Supply with PTT covering respective PPA tenors
Gas price pass-through at contracted heat rate under EGAT PPA
24.923.5
19.8
9.77.7
EDL PEA EGAT Industrial users- electricity(Thailand)
Industrial users- steam
(Thailand)
Track Record of
Extensions
Years Years
Years
YearsYears
11
Note: Weighted Average Remaining PPA life is calculated as the average remaining contractual term remaining from 31 December
2017 to expiry weighted by the aggregate contracted capacity under the relevant agreement
Trustworthy Customers with Long Remaining PPAs Secure Cash Flow
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
Delivery of Reliability in form of Electricity and Steam
FOOTHOLD IN TOP INDUSTRIAL ESTATES WITH
MULTIPLE OF GENERATING UNITS IN EACH LOCATIONSELECTED TOP IU FOR ELECTRICITY AND STEAM
THAILAND
CAMBODIA
LAOS
VIETNAM
▪ 1 power plant
▪ 130 MW
▪ 3 generating units
▪ 2 power plants
▪ 229 MW
▪ 6 generating units
▪ 2 power plants
▪ 240 MW
▪ 6 generating units
▪ 1 power plant
▪ 13 MW
▪ 5 power plants
▪ 647 MW
▪ 15 generating units
▪ 5 power plants
▪ 754 MW
▪ 17 generating units
▪ 2 power plants
▪ 206 MW
▪ 5 generating units
Hemaraj
Bangkadi
V.R.M.
Amata City
Amata City Bien Hoa
Laem Chabang
Amata Nakorn
XXHP
Gas-fired cogeneration power plants Transmission and Distribution
12
▪ 1 power plant
▪ 20 MW
▪ 3 generating units
Hydro power plants
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
Robust Growth Pipeline with Promising on Execution
ACHIEVED COD IN TIME AND WITHIN BUDGET FOR 26 CONSECUTIVE PROJECTS DURING PAST 7 YEARS
ABPR3(133 MW)
Current
(as of Feb’ 18)
31Plants
1,779 MWInstalled Capacity
1,008 MWEquity Capacity
ABP1 Replace(150 MW)
Interchem(5 MW)
Nam Khao(5 plants - 68 MW)
47
2019
Plants
2,147 MWInstalled Capacity
1,299 MWEquity Capacity
BGPR1, BGPR2(240 MW)
Tadsakoi(30 MW)
2,433 MWInstalled Capacity
1,575 MWEquity Capacity
Bo Thong 1 & 2 (2 plants - 16 MW)
2020
49Plants
2,163 MWInstalled Capacity
1,314 MWEquity Capacity
ABPR4, ABPR5(2 plants - 266 MW)
Solar 2017(7 plants - 31 MW)
Nam Che 1(15 MW)
41
2018
Plants
2,091 MWInstalled Capacity
1,197 MWEquity Capacity
ABP2 Replace(150 MW)
BPLC Replace(150 MW)
2022
52Plants
2,518 MW*Installed Capacity
1,703 MWEquity Capacity
+113 MW
Installed Capacity
Increase
(2018-2022)
+1,141 MW
13
202152
Plants
2021
Remark: *Assuming existing ABP2 (59.6 MW) and BPLC (56.1 MW) still run 1 gas turbine and steam turbine configuration after SPP
replacement plants achieve COD
Gas
Solar
IWTE
Hydro
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
BGRIM’s Strategy for Sustainable Growth
MEDIUM-TERM LONG-TERMSHORT-TERM
✓Leverage Strengths and Expertise for
Business Growth and Expansion
✓Highly Efficient Operating
Power Plants
✓Attractive M&A Opportunities
✓Strong Network with local partners
for Oversea Expansion
✓ Investment in Suitable Renewable
Energy projects in different countries
70/30*
Conventional/RenewableDomestic/International
THAILAND
CLMV
BGRIM’s Experienced Engineering
and Business Development Teams
BGRIM’s World Class
Technology with High Standard
BGRIM’s Strong Financial and
Well Managed Capital Structures
14
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
15
MYANMAR
LAOS
VIETNAM
CAMBODIA
MALAYSIA
THAILAND
Gas
Solar
Hybrid
Hydro
Transmission and
Distribution System (T&D)
Jan
2018
Q2’
2018
Q1-Q2’
2018
Negotiation on renewable
opportunity in Vietnam
Final phase negotiation with local
partners to invest in mid-scale
renewable projects in Vietnam
Installation of solar rooftop
Partner up with facility providers to
install solar rooftop with industrial users
with capacity of over 30 MW
Diligently Invest in Suitable Opportunities via Strong Networks
Investment in Industrial Waste
to Energy project
Invested in 4.8-MW industrial waste
to energy power plant located in
Ratchaburi and COD by 2019
2018
Exploring M&A deals with
opportunity to turnaround
Focus on both green and brown-field
projects that B.Grimm could turnaround
operationally and financially
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
16
BGRIM Updates and 2018 Outlooks
BGRIM Overview and Strategies
YE 2017 Operating Result
Project Update
Agenda
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
95% 96% 96%
96%96%
2%2% 2%
2%
2%
3%2% 2%
2%
3%
7,056 8,105 7,762
27,747
31,482
Q4/16 Q3/17 Q4/17 2016 2017
1,8152,270 2,099
7,494
8,725
25.7%
28.0% 27.0% 27.0% 27.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
2000
4000
6000
8000
10000
12000
Q4/16 Q3/17 Q4/17 2016 2017
+1,231 / 16.4% YoY
Top Line is Growing Strong with EBITDA Margin Improving
2016 to 2017 (YoY):• Sales and service income increased by 13.5% YoY primarily due to
an increase in revenue from APB5 and BPWHA1 that were fully
developed and are in operation in Jun and Nov 2016, respectively
Q3 2017 to Q4 2017 (QoQ):• Sales and service income decreased 4.2% QoQ primarily due to a
decrease in both electricity sales volume and selling price per unit to
EGAT, despite an increase in selling price to industrial users
2016 to 2017 (YoY):• EBITDA increased by 16.4% YoY which is in line with the increase in
revenue and improvement on EBITDA margin
• EBITDA margin improved to 27.7% in 2017, due to high efficiency of
the new power plants, operational cost saving and increase in Ft during
the year.
Q3 2017 to Q4 2017 (QoQ):• EBITDA decreased 7.5% QoQ being in line with the decrease in
revenue and an increase in SG&A during year end
17
EBITDA AND
EBITDA MARGIN
TOTAL SALE AND
SERVICE INCOME
Electricity
OthersSteam
(Unit: THB mm) (Unit: THB mm)
EBITDA
Margin
EBITDA
+745 / 10.6% YoY
-343 / -4.2% QoQ
+3,735 / 13.5% YoY
-171 / -7.5% QoQ
+284 / 15.6% YoY
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
2.92 2.893.22 3.19
2016 2017 2016 2017
EGAT Industrial Users (TH)
(Unit:THB/KWh) EGAT• EGAT Sales volume increased by 15.5% YoY due to COD of ABP5 and
BPWHA1 in Jun and Nov 2016, respectively
• Electricity price sales to EGAT slightly decreased by 1% from Baht
2.92/KWh in 2016 to Baht 2.89/KWh 2017 due to the fall of energy
payment affected from the decrease in natural gas price
IU Thailand• IU Thailand sales volume increased by 12.0% YoY due to COD of the
new power plants (BIP2, ABP5 and BPWHA1) and increase in demand
at Amata Nakorn, Amata City and Laem Chabang Industrial Estates
• Electricity price sales to Industry Users Thailand decreased by 0.9%
YoY primarily due to a change in natural gas price
5,805
2,634
6,706
2,949
2016 2017 2016 2017
EGAT Industrial Users (TH)
(Unit: GWh) (Unit: GWh)
Electricity Sales Volume Increased for BOTH EGAT and IU YoY
18
KEY DRIVERS: ELECTRICITY AND NATURAL GAS VOLUME AND PRICE Year on Year
ELECTRICITY SALES
VOLUME YoY
ELECTRICITY SELLING
PRICE YoY
1,520 1,551
327 345
669 688
221118 145
2016 2017 2016 2017 2016 2017 2016 2017 2016 2017
Amata Nakorn Amata City Laem Chabang Hemraj Bangkadi
SALES VOLUME FOR EACH INDUSTRIAL USER
FOR 12 MONTHS (TH) YoY
240.0
235.3
2016 2017
EFFECTIVE GAS
COST (Unit:THB/mmBTU)
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
19
High Standard Technology Leads to High Efficiency & Availability
Our SPP power plants realized lower heat rates
Most of our gas-fired cogeneration power plants have availability factors of above 90% since COD
Gas-Turbine
Technology Siemens V64.3 GE Frame 6B GE Frame 6B GE Frame 6BSiemens
SGT800 B
Siemens
SGT800 B
Siemens
SGT800 BGE LM 6000PD
Siemens
SGT800 BGE LM 6000PD
Siemens
SGT800 B
Siemens
SGT800 B
8,1
90
8,4
49
8,3
02
8,2
36
7,6
17
7,5
71
7,5
59
7,7
70
7,6
12
7,6
44
7,5
58
7,6
83
8,1
15 8,5
67
8,3
70
8,3
85
7,5
21
7,4
74
7,5
15
7,7
40
7,5
46
7,6
57
7,5
35
7,5
70
ABP1 BPLC1 ABP2 BPLC2 ABP3 ABPR2 ABPR1 BIP1 ABP4 BIP2 ABP5 BPWHA1
2016 2017
(a) (a) (b) (a)
HIGH EFFICIENCY (HEAT RATE)
HIGH AVAILABILTY (AVAILABILTY FACTOR)
COD Sep-98 Jul-01 Sep-01 Feb-09 Oct-12 Jun-13 Nov-13 Apr-15 Nov-15 Jan-16 Jun-16 Nov-16
(a)(b)(c)
Contracted Heat Rate 8,600 BTU/kWh
Contracted Heat Rate 8,000 BTU/kWh Contracted Heat Rate 7,950 BTU/kWh
(BTU/kWh)
90.3
98.595.6
99.897.9
93.296.0
85.2
97.1 96.898.3 99.0
92.49
96.94 96.68 96.69 97.2199.68
97.9 94.85 95.8396.23
96.6899.08
70
75
80
85
90
95
100
ABP1 BPLC1 ABP2 BPLC2 ABP3 ABPR2 ABPR1 BIP1 ABP4 BIP2 ABP5 BPWHA1
2016 2017
Note: (a) Electricity equivalent generations of steam dispatched are calculated according to efficiency calculation of EGAT PPA (SPP generation 1)
(b) Acquired on 30 June 2014.
(c) no EGAT PPA
(%)
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
45519 334
1,1661,727
78
349238
924
1,191
123
868
572
2,090
2,918
0
500
1000
1500
2000
2500
3000
3500
Q4/16 Q3/17 Q4/17 2016 2017
1.8%
10.7%
7.4% 7.5%9.3%
NNP Margin
NNP to owner
NNP to Non-Controlling Interest (NCI)
2016 to 2017:
• NNP increased 39.6% / NNP to Owner increased 48.1% YoY primarily
due to improvement of the operating profit margin and reduction of
financing cost resulting from the repayment of loan after IPO
• NNP margin improved to 9.3% in 2017 primarily due to improvement of
the operating profit margin and reduction of financing cost.
Q3 2017 to Q4 2017:
• NNP decreased 34.1% / NNP to Owner decreased 35.7% QoQ mainly
due to decrease in sales and services income and EBITDA and higher
financing cost thanks to an increase of interest expense from ABPIF
Normalized Net Profit (NNP) = Net profit – Unrealized Fx gain (loss) – Non-recurring income (expense)
-296 / -34.1% QoQ
+449/ 365.0% YoY
Reconciliation Items:
• Net unrealized Fx Gain 1,049 mm is due to the appreciation of the
Baht against the U.S. dollar at the ending of each financial statement
period
• Non-recurring expense 373 mm is due to the cost of bond issuance of
ABP3, ABPR1 and ABPR 2 as well as a provision of inventory and an
expense related to the remuneration scheme and expenses related to
IPO
+828 / 39.6% YoY
NNP for 12 Months Increased by 39.6% YoY
20
NORMALIZED
NET PROFIT (NNP)(Unit: THB mm)
RECONCILE NORMALIZED NET PROFIT (NNP) OF 2017(Unit: THB mm)
2,127
2,918
1,727
1,467
1,049
373 1,191
Net Profit UnrealizedFx Gain
Non-recurringexpense
NNP NNP to NCI NNP toOwner
Net Profit to NCI
Net Profit to owner
3,594
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
85% 71%
15%
29%
31 Dec 16 31 Dec 17
11%
20%11%
9%
78%
71%
31 Dec 16 31 Dec 17
76,047
89,241
Cash and cash
equivalents
OtherCurrent Assets
(Unit: THB mm)
Assets
Total
Liabilities
Total
Equity
76,047
89,241
Liabilities and Equity
Strong Financial Position Thanks to the Well-Managed Capital Structure
Non- Current Assets
Financial Position as at 31 Dec 2017
Total assets
• Total assets increased by 17.4% , primarily due to an
increase in cash and cash equivalents, PPE which mainly
comes from constructing power plants
Total liabilities
• Total liabilities decreased 1.6% primarily due torepayment of corporate loan of B.Grimm Power in the
amount of THB 5,960 mm during Q3’2017
Total Equities
• Total equities increased 123.2% primarily due to the
increase in paid up equity arising from net proceed from
IPO and retained earnings during the period
21
STATEMENT OF FINANCIAL POSITION
AS OF 31 DEC 2017
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
28%
15%21%
6%
4%
THB 53,856 MM
Project Level (In Operation)
Loan (THB)
22
• After repayment of corporate loan, only 14% of loan
represents loan at the corporate level. The
remaining 86% contributes to loan and debenture
at power plant level
• Interest obligations of almost all power plant level
debt are swapped to fixed rate
• Only 22% of total loan as at 31 Dec 2017 is
denominated in USD which is matched with a
proportion of EGAT tariff indexation to USD at project
level, so called “Natural Hedge” strategy
DEBT PROFILE
BGRIM optimizes Capital Structure through Well Managed Debt Profile
THB 14,794 MM
Project Level
(Under Construction)
Loan (THB)
THB 8,199 MM
Project Level
Debenture
THB 11,482 MM
Corporate Level
Loan
THB 1,949 MM
Corporate Level
Debenture
THB 5,494 MM
10%
5.1%
5.4%
4.9%
4.7%
0.04
0.04
0.05
0.05
0.05
0.05
0.05
0.06
2014 2015 2016 2017
• Financing costs decreased to 4.7% due to:
• Refinancing of project bond of ABP3, ABPR1,
and ABPR2 amounting of THB 11.5 billion in Apr
2017 to reduce financing cost at project level
• Repayment of corporate loan in the amount of
THB 5.9 billion during Q3’2017 in which its cost
is relatively high
(THB mm)
FINANCING COSTS
Project Level
(Under Construction)
Loan (USD)
THB 3,359 MM
Project Level (In Operation)
Loan (USD)
THB 8,581 MM
16%
BGRIM INVESTOR PRESENTATION
BGRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
55%
45%
Normalized NetProfit 2017
2.8x
-0.1x
4.1x
1.4x
(0.50)
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
Dec-16 Dec-17
Companyonly
COMPANY ONLY AND CONSOLIDATED NET
INTEREST-BEARING DEBT TO EQUITY RATIO
23
(Times)
Gearing Ratios
• Consolidated Net Interest-Bearing Debt to Equity Ratio decreased to 1.4x, and for the Company only fell to -0.1x as a result of the additional of net cash proceed from IPO
Minimum 40% of net profit of consolidated financial statements not including unrealized gain/loss on exchange rate and non-recurring expenses(subject to retained earnings of standalone financial statements)
Net Interest-bearing Debt to Equity Ratio significantly decreased after IPO
Manage debt and equity funding to optimize capital structure
Seek to obtain financing at project level
• Limited-recourse project loan with back-end equity
• Target 3.0x debt to equity project financing at outset,delevering over project life
Consolidated debt included loans at power plant becauseBGRIM holds majority in most of the projects
DIVIDEND PAYMENT*
DIVIDEND POLICYCAPITAL STRUCTURE
45% of net profit are paid as dividend with
the total value of 782 THB mm
▪ Dividend payment 0.3 THB per share
▪ Annualized dividend yield is 2.7%
(based on average 2H’2017 price of 22.3
baht and holding 6 month period)
1,727
(Unit: THB mm)
*Subject to approval from AGM dated 26 April 2018
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
24
BGRIM Updates and 2018 Outlooks
BGRIM Overview and Strategies
YE 2017 Operating Result
Project Update
Agenda
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
25
AMATA B.GRIMM POWER
(RAYONG) 4
Type of Fuel Combined Cycle Cogeneration
Installed Capacity Electricity 133 MW / Steam 30 t/h
Economic Ownership 55.5%
SCOD 1 Jun 2018
EGAT PPA 90 MW / 25 years
% Progress (as of 25 Jan 2018)
AMATA B.GRIMM POWER
(RAYONG) 5
Type of Fuel Combined Cycle Cogeneration
Installed Capacity Electricity 133 MW / Steam 30 t/h
Economic Ownership 55.5%
SCOD 1 Oct 2018
EGAT PPA 90 MW / 25 years
% Progress (as of 25 Jan 2018)
Progress on track
Progress on track
SPP – All projects are on Track and SCOD 2018
96.2%
86.7%
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
26
Hydro Project in Laos - Nam Che (15 MW) SCOD in 2018
NAM CHE 1 HYDRO POWER PROJECT
Type of Fuel Hydro (Run of the river)
Installed Capacity 15 MW
Economic Ownership 72.0%
SCOD Q4/2018
EDL PPA 15.0 MW / 25 years
% Progress (as of 25 Jan 2018)
Progress on track
61.2%
Transmission and Distribution in Cambodia SCOD in 2018
POIPET SPECIAL ECONOMIC ZONE
Type of Business 22-kv T&D in industrial estate
Economic Ownership 55.0%
SCOD Q1/2018
% Progress (as of 25 Jan 2018) 86.7%
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
Appendix
27
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
Renewable Group
Amata CityIndustrial Estate
28
Core subsidiaries and associates only
(a) B.Grimm Power’s 49.0% associate, B.Grimm Sena Solar Power, has an economic interest of 97.0% in these projects through preferred shares based on its right to receive 97.0% of the dividends from these projects and have 97.0% of
the total voting rights at shareholders’ meetings. Also, in case of liquidation (after all debts are repaid), B.Grimm Sena Solar Power Limited has the right to receive the following before other ordinary shareholders (i) 97.0% of dividends
from unallocated profits, (ii) 97.0% of all reserves required by law and (iii) any capital surplus
Note: As of 31 December 2017
*Preferred Shares
Hemaraj Industrial Estate
Bangkadi Industrial Park
V.R.M. Industrial EstateLaem Chabang
Industrial EstateAmata Nakorn Industrial Estate
51.2%
ABP1
(166MW)
ABP2
(171MW)
ABP3
(133MW)
ABP4
(131MW)
ABP5
(131MW)
69.3%
70.0%
60.0%
50.0%
50.0%
30.0%
29.9%
29.9%
Amata B.Grimm
Power Holding
25.3%*27.4%
*47.4%
ABPR1
(123MW)
ABPR2
(123MW)
ABPR3
(133MW)
ABPR4(133MW)
ABPR5(133MW)
50.0%
29.9%
50.0%
29.9%
29.9%
62.0%
30.0%
62.0%
30.0%
B. Grimm Power
Holding
(Laem Chabang)
BPLC1
(103MW)
BPLC2(56MW)
100.0%
100.0%
100.0%
Amata Power
(Bien Hoa)
(13MW)
60.0%
BGYSP
(60MW)
BGPSK
(8MW)
Thai Wind
Power
(Mukdhahan)
Bo Thong
(16MW)
49.0%
49.0%
100.0%
70.0%
BIP1
(115MW)
BGPR1
(120MW)
BIP2
(115MW)
74.0%
74.0%
100.0%
26.0%
B.Grimm Sena
Solar Power
Solarwa
(39MW)
TPS
(8MW)
49.0%*(a)
ABPIF
30.0%
BPWHA1
(130MW)75.0%
BGPR2
(120MW)100.0%
B. Grimm Power
Lao
XXHP
(20MW)
70.0%
100.0%
Holding Company
Power Plant Project Company
Infrastructure Fund
50.0%
74.0%
29.7%
30.0%
49.0%*(a)Nam Che
(15MW)
Nam Khao
(68MW)
72.0%
72.0%
Amata B. Grimm
Power
BGPSP
100.0%
Corporate Structure
48.0% Interchem
(5MW)
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
29
BGRIM’s Shareholders
34.0%
24.3%
9.1%
1.1%
0.3%
31.2%
B.Grimm Power
(Singapore) PTE. LTD.
Mr. Harald Link
B.Grimm Joint
Venture Holding
Ms. Caroline Link
Public
Shareholders
(a) B.Grimm Power (Singapore) PTE. LTD., B.Grimm Joint Venture Holding, Mr. Harald Link and Ms. Caroline Link are subject to regulatory shares lock up of 55% of post-IPO shares
Top Public Shareholders (as of 31 Dec 17) %
1. EUROCLEAR NOMINEES LIMITED 4.7%
2. Bualuang Long-Term Equity Fund 2.6%
3. Muang Thai Life Assurance Co., Ltd 1.3%
4. Thai Life Insurance Co., Ltd 1.1%
5. N.C.B. TRUST LIMITED-NORGES BANK 11 0.9%
6. Others 20.6%
Total 31.2%
PUBLIC SHAREHOLDERSPOST IPO
WITH 2,606.9 MM SHARES(a)
Directors and
Management
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
30
•
Note: (a) Based on B.Grimm Power’s direct and/or indirect interest in the project company owning the power plant
(b) Amata B.Grimm Power owned 30.0% of ABPIF’s units and consequently, our economic ownership of Amata B.Grimm Power 1 Limited and Amata B.Grimm Power 2 Limited was 15.3%
(c) PPA extension is under negotiation with EGAT. NEPC is currently in the process of establishing policies relating to the extension of SPP PPAs that will expire between 2019 – 2025 (include ABP1, ABP2 and BPLC1) for 25 years with
up to 30 MW contracted capacity. This would require construction of new power plants and decommissioning of existing power plants
(d) Acquired from Sime Darby Energy on 30 June 2014
(e) We instead purchase power directly from a subsidiary of EVN which we then on-sell to industrial users in Amata City Bien Hoa Estate
Company Abbreviation Fuel Type COD
Economic
Ownership
%(a)
Capacity Main PPA Industrial User
Installed
(MW)
Equity
(MW)
Offtaker /
ProgramPPA Expiry
Contracted
Capacity
(MW)
Electricity
Contracted Capacity
(MW)
Steam Contracted
Capacity
(t/h)
Amata Nakorn Industrial Estate, Thailand
Amata B.Grimm Power 1 ABP1 Gas-Fired Cogen Sep-98 15.3%(b) 166.4 25.5 EGAT (SPP) Sep-19(c) 90.0 103.3 6.0
Amata B.Grimm Power 2 ABP2 Gas-Fired Cogen Sep-01 15.3%(b) 171.2 26.2 EGAT (SPP) Sep-22(c) 90.0 83.0 16.0
Amata B.Grimm Power 3 ABP3 Gas-Fired Cogen Oct-12 60.7% 132.5 80.4 EGAT (SPP) Oct-37 90.0 46.1 13.0
Amata B.Grimm Power 4 ABP4 Gas-Fired Cogen Nov-15 55.5% 131.1 72.8 EGAT (SPP) Nov-40 90.0 32.5 –
Amata B.Grimm Power 5 ABP5 Gas-Fired Cogen Jun-16 55.5% 131.1 72.8 EGAT (SPP) Jun-41 90.0 33.4 13.0
Subtotal 732.3 277.7 450.0 298.3 48.0
Amata City Industrial Estate, Thailand
Amata B.Grimm Power (Rayong) 1 ABPR1 Gas-Fired Cogen Nov-13 61.7% 123.3 76.1 EGAT (SPP) Nov-38 90.0 17.0 14.0
Amata B.Grimm Power (Rayong) 2 ABPR2 Gas-Fired Cogen Jun-13 61.7% 124.4 76.8 EGAT (SPP) Jun-38 90.0 24.0 14.0
Amata B.Grimm Power (Rayong) 3 ABPR3 Gas-Fired Cogen Feb-18 55.5% 133.0 73.8 EGAT (SPP) Jan-43 90.0 13.0 -
Subtotal 380.7 226.7 270.0 54.0 28.0
Laem Chabang Industrial Estate, Thailand
B.Grimm Power (Laem Chabang) 1 BPLC1 Gas-Fired Cogen Jul-01(d) 100.0% 103.0 103.0 EGAT (SPP) Jul-22(c) 60.0 48.1 46.2
B.Grimm Power (Laem Chabang) 2 BPLC2 Gas-Fired Cogen Feb-09(d) 100.0% 56.1 56.1 – – – 61.3 18.5
Subtotal 159.1 159.1 60.0 109.4 64.7
Bangkadi Industrial Park, Thailand
B.Grimm BIP Power 1 BIP1 Gas-Fired Cogen Apr-15 74.0% 114.6 84.8 EGAT (SPP) Apr-40 90.0 14.0 –
B.Grimm BIP Power 2 BIP2 Gas-Fired Cogen Jan-16 74.0% 114.6 84.8 EGAT (SPP) Jan-41 90.0 18.5 –
Subtotal 229.2 169.6 180.0 32.5 –
Hemaraj Industrial Estate, Thailand
B.Grimm Power (WHA) 1 BPWHA1 Gas-Fired Cogen Nov-16 75.0% 130.0 97.5 EGAT (SPP) Nov-41 90.0 31.0 –
Gas-Fired Cogen Total 1,631.3 930.6 1,050.0 525.2 140.7
Amata City (Bien Hoa) Industrial Estate, Vietnam
Amata Power (Bien Hoa)(e) APB Diesel Generator Apr-99 30.7% 13.0 4.0 – – – 310.5 –
Conventional Total 1,644.3 934.6 1,050.0 835.7 140.7
Operational Power Plants: Conventional
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
31
Note: As of 31 December 2017
(a) Based on B.Grimm Power’s direct and/or indirect interest in the project company owning the power plant.
Company / Project Abbreviation Location CODEconomic
Ownership %(a)
Capacity Main PPA(s)
Installed
(MW)
Equity
(MW)
Offtaker /
ProgramPPA Expiry
B.Grimm Yanhee Solar Power BGYSP 49.0% 59.7 29.3
Sai Luang 2
Pathumthani province,
ThailandDec-15
8.0 3.9
PEA (FiT) Dec-40
Sai Luang 3 8.0 3.9
Sai Luang 9 7.2 3.5
Sai Luang 10 7.5 3.7
Sai Yai Nha 8.0 3.9
Sai Manow 8.0 3.9
Sai Putsa 8.0 3.9
Sai Sena 2 Ayutthaya province, Thailand 5.0 2.4
Solarwa Solarwa 47.5% 38.5 18.3
Sai Lui Rim Num
Nakhon Pathom province,
Thailand
Dec-15
8.0 3.8
PEA (FiT) Dec-40
Sai Chalouw 1 8.0 3.8
Sai Sab 8.0 3.8
BGTTRE2Saraburi province, Thailand
8.0 3.8
BGTTRE3 6.5 3.1
TPS Commercial TPS Saraburi province, Thailand Dec-15 47.5% 8.0 3.8 PEA (FiT) Dec-40
B.Grimm Solar Power (Sakaeo) 1 BGPSK Sakaeo province, Thailand Apr-16 100.0% 8.0 8.0 PEA (FiT) Apr-41
Total 114.2 59.2
Operational Power Plants: Solar
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
391 419 466 483
2,042 2,436 2,634 2,949
3,098
3,744
5,805
6,706
(1,000)
1,000
3,000
5,000
7,000
9,000
11,000
2014 2015 2016 2017
Electricity Sales to EGAT by SPPs
Electricity Sales to Industrial Users - Thailand
Electricity Sales to Industrial Users - Vietnam (APB)
32
Power Plant CompanyNet Electricity Generation (GWh)
2014 2015 2016 2017
ABP1 962 863 967 998
ABP2 1,208 1,188 1,227 1,142
ABP3 933 891 860 952
ABP4 0 100 793 768
ABP5 0 0 470 789
ABPR1 722 797 807 779
ABPR2 784 798 776 850
BPLC1 374 733 760 769
BPLC2 164 319 330 333
BIP1 0 443 608 696
BIP2 0 0 728 738
BPWHA 0 0 109 855
Total 5,147 6,131 8,441 9,669
Power Plant CompanySteam Dispatched (Tons)
2014 2015 2016 2017
ABP1 5,072 3,833 1,699 1,436
ABP2 49,002 42,938 39,484 42,668
ABP3 58,696 95,387 83,561 88,140
ABPR1 44,958 67,252 77,859 56,841
ABPR2 116,084 98,297 76,890 107,609
BPLC1 107,203 188,273 191,008 178,824
BPLC2 19,119 41,522 38,628 36,155
Total 400,133 537,503 509,130 511,673
(GWh)
Our electricity dispatch increased since 2014 primarily as a result of 7
gas-fired cogeneration power plants coming into operation
NET ELECTRICITY GENERATION
BY GAS-FIRED COGENERATION POWER PLANTS
TOTAL ELECTRICITY SOLD
BY CUSTOMERS
STEAM DISPATCHED
BY GAS-FIRED COGENERATION POWER PLANTS
56.0%
36.9%
7.1%
56.7%
65.1%
29.6%36.9%
6.3% 5.2% 4.8%
29.1%
66.1%
Operational Highlights: Net Electricity Generation and Steam Dispatched
10,138
8,912
6,599
5,513
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
33
18.718.5 18.5 18.7 18.6 18.5 18.6 18.6 18.2 18.3 18.6
17.1 17.4 17.816.7
18.7 18.5 18.418.6 18.4
18.4 18.0 18.718.0 18.0
18.4
16.917.2 17.2 16.8
0.0
5.0
10.0
15.0
20.0
25.0
Sai Luang2
Sai Luang3
Sai Luang9
Sai Luang10
Sai Yai Nha Sai Manow Sai Putsa Sai Sena 2 Sai Lui RimNum
SaiChalouw 1
Sai Sab BGTTRE2 BGTTRE3 BGTTRE1 BGPSK
2016 2017
16.0%
capacity
factor
(FiT tariff cap)
8.0 MW 8.0 MW 7.2 MW 7.5 MW 8.0 MW 8.0 MW 8.0 MW 5.0 MW 8.0 MW 8.0 MW 8.0 MW 8.0 MW 6.5 MW 8.0 MW 8.0 MW
BGYSP Solarwa TPS BGPSK
Our solar power plants are located in regions with strong irradiation, resulting in high energy yields of above 16.0% capacity factor
Operational Highlights: Net Electricity Generation and Steam Dispatched
CAPACITY FACTOR (%)
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
34
Projects
Installed
Capacity
(MW)
Steam
Capacity
(ton/hr)
Type of maintenanceDuration
(days)
2018
Q1 Q2 Q3 Q4
Amata Nakorn
ABP1 166.4 30.0 Major Overhaul 22
ABP2 171.2 30.0Major Overhaul 22
Major Overhaul 11
ABP3 132.5 30.0 Major Inspection 17
ABP4 131.1 30.0 Major Inspection 13
Laem Chabang
BPLC1 103.0 50.0Major Overhaul 14
Major Overhaul 8
Bangkadi
BIP1 114.6 20.0 Major Inspection 10
BIP2 114.6 20.0 Major Inspection 10
Maintenance Schedule in 2018
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
35
Source: Company filing and data as of 31 March 2017, EGAT, PEA
(a) Some contract terms are year-on-year basis
(b) According to concession agreements
SPP Gas-fired Cogeneration Solar PV Wind Hydro
EGATIndustrial Users
PEA (FiT) PEA (Adder) EDLElectricity Steam
Term (years) 21 – 25 years 5 – 15 years(a) 5 – 15 years(a) 25 years 5 years 25 years
Weighted average remaining life
(years)20.4 years 10.1 years 8.4 years 23.9 years Not yet COD 25.0 years
Extension option ✓* ✓ ✓ –5 years
auto extensionUp to 10 years
Contracted capacity90 MW
(except for BPLC1
which is 60MW)
Depends on each contract 5 – 8 MW 8 MW 6.7 – 15 MW(b)
Secured fuel supply ✓ ✓ ✓ N/A N/A N/A
Natural gas cost pass-through ✓
(at contracted heat rate)Partially through Ft Depends on contract N/A N/A N/A
FX pass-through ✓ Partially through Ft – – – –
Inflation indexation – – ✓ – – –
Tariff See next page 5.66 THB/kWh
PEA wholesale +
10-year adder at
3.50 THB/kWh
0.065 US$/kWh
Applicable power plants ABP1-5, ABPR1-5, BPLC1, BIP1-2, BPWHA1, BGPR1-2
BGYSP (8 projects),
Solarwa (5 projects),
TPS, BGPSK
Bo Thong
(2 projects)
XXHP (2 projects),
Nam Che, Nam Khao
1-5 (5 projects)
*NEPC is currently in the process of establishing policies relating to the extension of SPP PPAs that will expire between 2019 – 2025 (include ABP1, ABP2 and
BPLC1) for 25 years with up to 30 MW contracted capacity
On 17 May 2017, ERC passed a resolution instructing EGAT to deliver the draft SPP power purchase agreements for which the existing power purchase
agreements with EGAT will expire between 2019 and 2025, to the Office of the Attorney General for consideration
Contractual Overview: Commercial Features
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
36
Electricity Tariff = Capacity Payment + Energy Payment + Fuel Saving
Payment + VAT
Capacity Payment Rate (THB/kW/month) = 𝐶𝑃0 × 𝑥 ×𝐹𝑋𝑡
𝐹𝑋0+(1− 𝑥)
Energy Payment Rate (THB/kWh) = 𝐸𝑃0 +𝑃𝑡−𝑃0
106× contracted Heat rate
Fuel Saving Payment Rate (THB/KWh) = 𝐹𝑆0 ×𝑃𝐸𝑆𝑡
10%
𝐹𝑋𝑡 = THB/ US$ Exchange Rate
𝑃𝑡 = Price for natural gas PTT sells to SPPs in a month (THB/mmBTU)
𝑃𝐸𝑆𝑡 = primary energy saving (“PES”) statistic measuring the efficiency rate of
our gas-fired cogeneration power plant in consuming natural gas in the
generation of electricity and thermal energy
Source: Company filing and data, EGAT
SPP Regulation 1992, 2005 2007 2010
Applicable power plantsABP1-2,
BPLC1
ABP3,
ABPR1-2,
BIP1
ABP4-5,
ABPR3-5,
BIP2, BOWIN,
BGPR1-2
Base Capacity Payment Rate
(𝐶𝑃0) (THB/kW)302.00 383.66 420.00
Base Exchange Rate (𝐹𝑋0)
(THB/US$)37 34 34
US$THB FX indexation (𝑥) 0.8 0.5 0.5
Base Energy Payment Rate
(𝐸𝑃0) (THB/kWh)0.85 1.70 1.85
Base Price for Natural Gas
PTT sells to SPPs (𝑃0)
(THB/mmBTU)
77.0812 209.4531 232.6116
Contracted Heat Rate
(BTU/kWh)8,600 8,000 7,950
Fuel Saving Payment - ✓ ✓
Base Fuel Saving Payment
(𝐹𝑆0) (THB/kWh)- 0.36 0.36
Contractual Overview: EGAT PPA under SPP Program
TARIFF STRUCTURE
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
37
Power Plant Company COD / SCODFull income tax exemption 8 years from
COD
50% partial income tax exemption for
5 years following full exemption expiry
ABP3 October 2012 ✓ –
ABP4 November 2015 ✓ –
ABP5 June 2016 ✓ –
ABPR1 November 2013 ✓ ✓
ABPR2 June 2013 ✓ ✓
ABPR3 February 2018 ✓ ✓
ABPR4 June 2018 ✓ ✓
ABPR5 October 2018 ✓ ✓
Solarwa December 2015 ✓ –
BGYSP December 2015 ✓ –
BGPSK April 2016 ✓ ✓
TPS December 2015 ✓ –
BIP1 April 2015 ✓ –
BIP2 January 2016 ✓ –
BOWIN November 2016 ✓ –
BPLC2 February 2009✓
(end of exemption period)✓
Tax Privileges
In Operation Under Construction
Impact of ABPIF to BGRIM F/S
38
REVENUE SHARING CONCEPT
ABP1 and ABP2
Reduction of liability due to principal payback to
ABPIF based on amortization schedule
Total liabilities
Financing costs
Increased on the interest expense in regard to
remaining cash to be transferred to ABPIF
ABPIF
Total assets
Reduction of value (NAV) from the loan
repayment
Revenue
Increased mainly from the interest and remaining
cash which were booked as revenue in ABPIF
BGRIM’s PL(unit: million baht) Q1 Q2 Q3 Q4 2017
Share of profit from ABPIF
30 16 23 81 149
Interest expense
paid to ABPIF(111) (66) (87) (283) (546)
IMPACT TO BGRIM’S FINANCIAL STATEMENT
Net effect to BGRIM’s NNP
to Owner of 51%
(30% of ABPIF net income)
(100% of interest expense
from ABP1&2)
Nature of cash transfer to ABPIF is peak on the 4th quarter because there is no major cash flow out besides operation
(ABP1 and ABP2 pay debt service in Q1 and Q3 and tax in Q2 every year)
% shareholding of BGRIM
Cash transfer to ABPIF = Cash flow from operation – Tax – CAPEX - Debt service – Cash reserve = Cash Available for Dividend
Effect on Balance sheet
Effect onP/L
51% 15%
Entities
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
39
Abbreviation & Our Projects
ABBREVIATIONADB Asian Development Bank
COD Commercial Operation Date
EBITDA Earnings before Interest, Taxes, Depreciation and Amortization
EDL Electricite Du Laos
EGAT Electricity Generating Authority of Thailand
ERC Energy Regulatory Commission
EPC Engineering, Procurement and Construction
EVN Electricity of Vietnam
FiT Feed-in Tariff
FX Foreign exchange
IPO Initial public offering
IU Industrial user
IWTE Industrial Waste to Energy
JV Joint venture
KWh Kilowatt-hour
GWh Gigawatt-hour
mmBtu Million Btu (unit of gas consumption)
NNP Normalized net profit
O&M Operations and maintenance
P.A. Per annum
PEA Provincial Electricity Authority (Thailand)
PPA Power purchase agreement
PTT PTT public Company Limited
ROA Return on assets
ROE Return on equity
SG&A Selling, general & administrative expense
YE Year End
YoY Year-on-Year
OUR PROJECTSABPIF Amata B.Grimm Power Plant Infrastructure Fund
ABP1 Amata B.Grimm Power 1
ABP2 Amata B.Grimm Power 2
ABP3 Amata B.Grimm Power 3
ABP4 Amata B.Grimm Power 4
ABP5 Amata B.Grimm Power 5
ABPR1 Amata B.Grimm Power (Rayong) 1
ABPR2 Amata B.Grimm Power (Rayong) 2
ABPR3 Amata B.Grimm Power (Rayong) 3
ABPR4 Amata B.Grimm Power (Rayong) 4
ABPR5 Amata B.Grimm Power (Rayong) 5
BGPSK B.Grimm Solar Power (Sakaeo) 1
BGSENA B.Grimm Sena Solar Power Limited
BGYSP B.Grimm Yanhee Solar Power
BIP1 B.Grimm BIP Power 1
BIP2 B.Grimm BIP Power 2
BPLC1 B.Grimm Power (Laem Chabang) 1
BPLC2 B.Grimm Power (Laem Chabang) 2
BPWHA1 B.Grimm Power (WHA) 1
Nam Che Nam Che 1 Hydro Power Project
XXHP Xenamnoy 2 and Xekatam 1 Hydro Power Project
BGRIM INVESTOR PRESENTATION
B.GRIM OVERVIEW AND STRATEGIES Q4/2017 AND YE 2017 RESULT PROJECT UPDATEBGRIM YEAR-END 2017 KEY HIGHLIGHTS BGRIM UPDATES AND 2018 OUTLOOKS
Q4 and YE 2017
INVESTOR RELATIONS
Chairath Sivapornpan
Email: [email protected]
Tel: +66 (0) 2710 3528
40
IR Contact
Disclaimer
None of the Company makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this document or otherwisemade available nor as to the reasonableness of any assumption contained herein or therein, and any liability therein (including in respect of any direct, indirect or consequentialloss or damage) is expressly disclaimed. Nothing contained herein or therein is, or shall be relied upon as, a promise or representation, whether as to the past or the future and noreliance, in whole or in part, should be placed on the fairness, accuracy, completeness or correctness of the information contained herein. Further, nothing in this document shouldbe construed as constituting legal, business, tax or financial advice.
This document is a summary only and does not purport to contain all of the information that may be required to evaluate any potential transaction and any recipient hereof shouldconduct its own independent analysis of the Company, including the consulting of independent legal, business, tax and financial advisers. The information in these materials isprovided as at the date of this document and is subject to change without notice.
.
Gunnlapat Wichutarat
Email: [email protected]
Tel: +66 (0) 2710 3570
Contact Us:
Dr. Gerhard Link Building,
5 Krungthepkreetha Road, Huamark,
Bangkapi, Bangkok 10240, Thailand
Tel: +66 (0) 2710 3400
Fax: +66 (0) 2379 4245